Central Banks
Vietnam Raises Key Rates by 100 Basis Points as Dong Slumps
- Central bank also pledged to intervene in currency market
- Refinance rate, one of key rates, back to pre-pandemic level
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Vietnam’s central bank unexpectedly raised interest rates by another 1 percentage point for a second straight month to help ease pressure on a currency that has slumped to a record low.
The refinance rate will rise to 6% while the discount rate will increase to 4.5%, starting Oct. 25, the State Bank of Vietnam said in a statement late Monday. The central bank also raised the cap on the dong deposit rate for the one-to-less than six month tenure to 6% and increased the interbank overnight lending rate to 7%.